Allowed

Punjab National Bank v. Balwinder Singh

DRT5 Dec 2024OA/2038/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an original application filed by Punjab National Bank for recovery of an outstanding loan of approximately Rs.39.37 lakhs from a mortgagor who failed to repay. The Tribunal reduced the claimed interest rate to 8% per annum and authorized recovery from mortgaged properties or personal assets.

What did the court decide?

Recovery Certificate issued. Defendant liable to pay Rs.39,36,930.20 plus costs and 8% simple interest until realization.

Punjab National Bank versus Balwinder Singh — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.2038/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 24.11.2022

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DATE OF DECISION: 05.12.2024

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Punjab National Bank, a body corporate and a nationalized Bank constituted under the provisions of the Banking Companies (Acquisition and Transfer of Undertakings) Act 5, 1970 with its Head Office at Plot No. 4, Sector-10, Dwarka, New Delhi 110 075 and amongst others a branch at Doraha, Ludhiana through Sh. Ramesh Kumar, Chief Manager and Attorney holder presently posted at Circle SASTRA Centre Ludhiana. (Transferee Bank from erstwhile Oriental Bank of Commerce)

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……..Applicant Versus

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Sh. Balwinder Singh S/o Sh. Kehar Singh, resident of Araichan, Tehsil Payal, District Ludhiana Pin Code 141421.

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….……Defendant

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Advocates:

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Argued by Sh. Manish Singla, Advocate for the applicant Defendant is ex-parte

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FINAL ORDER

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Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendant for recovery of Rs.39,36,930.20p (Rupees Thirty Nine Lacs Thirty Six Thousand Nine Hundred Thirty and Twenty Paise only). The Original Application has been filed through Sh. Ramesh Kumar, Chief Manager o f the applicant, who is competent to institute the Original Application vide Power of Attorney dated 04.03.2020, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant had approached the applicant for the grant of KCC Limit of Rs.30.00 Lacs vide Loan application dated 02.11.2011, which is Annexure A3 to this OA.

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The applicant sanctioned the KCC Limit of Rs.30.00 Lacs vide Sanction Letter dated 03.11.2011, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged his immovable property i.e. land measuring 30K-00M situated at Village Bishanpura, Hadbast no.238, Tehsil Payal and District Ludhiana, Punjab vide Registered Mortgage Deed bearing vasika no.2661 dated 17.11.2011, along with their English Translation, which is Annexure A6 to this OA. Documents executed: - Gazette Notification dated 04.03.2011, which is Annexure A2 to this OA; Hypothecation Agreement, dated 24.11.2011, which are Annexures A5 to this OA; Balance and Security Confirmation Letters dated 11.11.2014, 01.07.2017 & 27.11.2019, which are Annexures A7 to A9 to this OA; Notice dated 17.11.2022 along with Postal Receipt, which is Annexure A10 to this OA and Statement of account with certificate, which is Annexure A11 to this OA.

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The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.39,36,930.20p, which is recoverable and the defendant was served recall notice but he did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendant was served notice to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 03.12.2024.

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In support of the OA, affidavit of Sh. Ramesh Kumar, Chief Manager, Punjab National Bank has been filed. 8. Heard arguments and perused record. 9. It was argued by learned counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the

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Annexures A1 to A11 to this OA, it is proved that the defendant approached applicant for availing of the loan facility which was granted to him and for that he had executed all the relevant documents in favour of the applicant. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.39,36,930.20p (Rupees Thirty Nine Lacs Thirty Six Thousand Nine Hundred Thirty and Twenty Paise only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the account. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @9.25%p.a. along with penal interest @2.00%p.a. with half yearly rests from 03.10.2022 till the realization.

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The Tribunal is of the considered opinion that sometimes in appropriate cases the prerogative of mercy is the brightest jewel in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including nature of the mortgaged property, undertaking of the defendant, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @8.00%p.a. in the loan account from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly. 11. In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.39,36,930.20p (Rupees Thirty Nine Lacs Thirty Six Thousand Nine Hundred Thirty and Twenty Paise only), with costs, current and future simple interest @8.00%p.a. in the loan account from the date of filing of OA till the date of realization of the amount. Accordingly, the

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applicant shall be entitled to recover aforesaid amount from the sale of hypothecated/mortgaged properties of the defendant in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the applicant still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the defendant. The applicant is at liberty to enforce the claim through due process of law. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 15.01.2025. 15. Copy of this order be given dasti to the applicant and be sent to defendant through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned. Pronounced by me in the open Tribunal. Dated: 05.12.2024

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Balwinder Singh

Case brief

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Punjab National Bank v. Balwinder Singh

Case brief

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